Tag Archive for Tag: contracts

Tag: contracts Adjustment item to the total price

An adjustment item is an addition or deduction a tenderer makes to the final total of his prices entered in the bills of quantities. The CESMM permits an adjustment item as a lump sum addition or deduction, paid by instalments in the same proportion as the total payments to date, less retention, bears to the total of billed prices (see Section 16.4). The addition

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Tag: contracts Quantity records

For admeasurement contracts, measurement of quantities of work done will be one of the most important tasks undertaken by the RE and his staff. Two essentials for any system are: • it must be possible to ascertain from the records what has been measured and what has not been measured; the records must clearly show what has been paid for

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Tag: contracts The contract documents

A contract is an agreement between two parties which they intend to be legally binding with respect to the obligations of each party to the other and  their liabilities. The contract thus binds the contractor to construct the works as defined, and the employer to pay for them in the manner and timing set out. As civil engineering works are often complex,

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Tag: contracts Roles of the key participants in a construction contract

Aconstruction contract is made between two parties only – ‘the Employer’ and ‘the Contractor’. Their roles are defined in the contract. However, because there is a need for day-to-day supervision of civil engineering construction, the two parties may agree that a third person should carry out such duties. This third person can have varying powers under the contract and this is reflected in his designation.

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Tag: contracts Standard conditions of contract

Over a period of many years there have been a large number of standard forms of conditions of contract introduced. Sometimes these have been developed by particular industries or specialist suppliers, but conditions for more general use have been developed by the major engineering and building institutions, as well as by government and allied organizations. Use of these standard conditions is beneficial because they are

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Tag: contracts New approaches to construction contracts in the 1990s

In 1991 the ICE published a new type of contract called the New Engineering Contract (NEC) which aimed to promote better management of construction contracts to reduce claims and disputes. Under it a Project Manager acting for the Employer administers the contract and a separate Adjudicator is appointed to settle disputes, subject to later arbitration or legal settlement (see Section

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Tag: contracts Growing use of design, build and operate contracts

Design, build and operate (DBO) contracts were increasingly used in the 1980s onwards by government departments in the UK who saw a benefit in not shouldering all the complications of building and operating a new facility, but in passing this out to the commercial sector. Such contracts have the added advantage that if a contractor has to operate the works

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Tag: contracts Design and build contracts

These contracts are useful to a promoter who wishes to delegate the whole process of design and construction, or for whom gaining the output of a project is of more importance than the details of design. They also suit promoters who would not expect to be involved in construction work, such as health or education authorities. D&B contracts can offer

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Tag: contracts Cost reimbursement contracts

These contracts have been in use for many years on projects which involve unforeseeable amounts or kinds of work – such as the repair of a dam or collapsed tunnel, or repair of sea defences. Payment to the contractor is usually on the basis of: (i) direct costs of materials, labour and plant used on the site; plus (ii) a

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